Los Angeles daily herald., 1887-07-30
SENATOR STANFORD
Gives the History of the
Central Pacific,
AND IT'S EARLY TROUBLES.
He Speaks of Time when the
Stock was Only Worth Ten
Cents on the Dollar.

Associated Press Dispatches TO the Herald.l
SAN Francisco, July 29.-At this
mornings session of the Pacific Rail-
road Commission the reading of the re-
Plies of Senator Stanford to interroga-
tions o.iirnesed him was continued
Those first under consideration related
to obligations due the United States by
the company, and the security
held by the United States for
performance of such obligations
and value OF the property. The
answer was in general terms, the
gist being that the only thing which
the government could do would he to
fix the rate of interest, and that
should not be more than two per cent.
per annum. To a question what fur
ther security the company would
give, the reply was that the govern
ment had no right to change its con-
tract with the company, and the
best security the government can have
are the equities which had been sug-
gested. Stanford also renewed his
claim that there had been much hos
tile legislation. He also gave an ac-
count OF the manner in which project
of building the road was first discussed
by himself, Hopkins, Huntington and
others, and the preliminary work OF
exploring and surveying done by them.
Stanford, in reply as to how the in
debtedness OF the government could
be paid off, said it could only be done
by increasing rates in traffic in Utah
and Nevada by 33 per cent
HISTORY OF THE ROAD.
Governor Stanford then gave in de-
tail the history of the building OF the
Central Pacific. Replying TO an indi-
rect question that the records show
that over $4,000, 900 were paid to
Charles Crocker for building 10 Sec
tons OF the road, witness said: 81
cannot speak as to the accuracy of
those figures. We worked on those
mountains from 10000 TO IL, 900 men,
and ter we passed the mountains We
had half that number. | would like
to tell you of the magnitude OF the
work. Why the first $50 miles to the
State line was OF greater difficulty
than to have continued tine line from
Truckee to Chicago"
"As we understand it," said one of
the commissioners, under various
contracts certain parties have sue
ceeded in getting large blocks of stocks
and bonds to themselves and that is
the reason OF the present crippled con-
dition OF the company"
"Stock had no value then" was the
reply 'since then it has become val
liable. | bought myself, for the ac-
commodation OF the stockholders b.
900 stocks ior ten cents on the dollar.
We did not really hold it of any spe-
cial value"
"Have you ever been over the books
with Croeker to find out whether he
made any money out OF that contract"
asked Mr.. Anderson.
mo, | have not, our relations were
such that we knew what he wanted
and he did not get any more. 1t was
hard enough to give him that. We
had no right to question him as to
what moneys were expended, because
necessary. If Croker had been max
ing money out OF it we would have
stopped his contract, because We could
not have afforded it. We, too. would
have had to stop. / did not receive
any profits from that Crocker con-
tract"
II will say again." observed An
derson, THAT great deal has been
said that the rates paid the Contract
and Finance company have now i'm
paired the Central Pacific, and the
books being missing, make us feel in
terested in Them we ask you to give
us some light upon the matter"
81 know that there has been gener-
al talk to the effect" replied STAN
ford, "that we made hundreds of mil
lions out OF that company. We made
money simply bv holding on to the
stock which none would once have"
HARD TIMES.
In speaking of the value of the
stock while the road was in course of
construction, Senator Stanford said
that when it reached Ogden they
would have been glad to have disposed
of it at ten cents on the dollar. He
stated that after the consolidation of
the roads now comprising the Central
Pacific his share was something like
$13, 900.
what is your present interest in
the Central Pacific" was asked by
Mr. Anderson.
"Well, as rule, l do not care
about telling my private business, but
/ believe that at present | own about